Pan African Resources Plc - Trading Statement for the year ended 30 June 2023

PR Newswire

Pan African Resources PLC

(Incorporated and registered in England and Wales under the Companies Act 1985 with registered number 3937466 on 25 February 2000)

Share code on AIM: PAF

Share code on JSE: PAN

ISIN: GB0004300496

ADR ticker code: PAFRY

(“Pan African” or the “Company” or the “Group”)

 

Pan African Resources Funding Company Limited

Incorporated in the Republic of South Africa with limited liability

Registration number: 2012/021237/06

Alpha code: PARI

 

 (Key features are reported in United States dollar (US$) and South African rand (ZAR))

 

TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2023 (CURRENT FINANCIAL YEAR)

This announcement contains inside information

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a listed company is required to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that the financial results for the current financial year, will differ by at least 20% from those of the year ended 30 June 2022 (previous financial year).

 

Pan African’s presentation currency is the US$ and its functional currency is the ZAR. Movements in the US$/ZAR exchange rate affects the Group’s US$ reported results. The average US$/ZAR exchange rate, that prevailed during the current financial year, is used in translating the Group’s ZAR financial performance into US$.

 

During the current financial year, the average US$/ZAR exchange rate was US$/ZAR:17.77 (2022: US$/ZAR:15.22), and the closing US$/ZAR exchange rate as at 30 June 2023 was US$/ZAR:18.83 (2022: US$/ZAR:16.28).

 

The year-on-year change in the average and closing exchange rates of 16.8% and 15.7%, respectively, must be considered when comparing period-on-period results. The weighted average number of outstanding shares as at 30 June 2023 was 1,916,503,988 shares (2022: 1,926,065,760 shares).

 

Pan African advises shareholders that its headline earnings per share (HEPS) for the current financial year are expected to be between US 2.95 cents per share and US 3.35 cents per share, compared to US 3.93 cents per share for the previous financial year, a decrease of between 15% and 25%. Earnings per share (EPS) for the current financial year are expected to be between US 3.00 cents per share and US 3.39 cents per share respectively, compared to US 3.90 cents per share for the previous financial year, a decrease of between 13% and 23%.

 

The decreases in HEPS and EPS for the current financial year, relative to the previous financial year, are largely as a result of a 16.8% depreciation in the average US$/ZAR exchange rate, while earnings in ZAR terms remained fairly consistent with that of the previous financial year, as a result of the following primary factors:  

  • Revenue in ZAR terms decreased by 0.2% only, as the 15% decrease in gold sold volumes previously announced was offset by a 17.5% increase in the average ZAR gold price received during the current financial year, and
  • ZAR gross profit decreased by 3.2%, and ZAR profit after tax decrease by 5.4%, compared to the previous financial year.

 

The financial information contained in this announcement has neither been reviewed nor audited by the Company’s auditors. The Group’s results for the year ended 30 June 2023 will be released on 13 September 2023.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

 

Rosebank

1 September 2023

For further information on Pan African, please visit the Company's website at

www.panafricanresources.com

 

Corporate information

Corporate office

The Firs Building

2nd Floor, Office 204

Corner Cradock and Biermann Avenues

Rosebank, Johannesburg

South Africa

Office: + 27 (0) 11 243 2900

info@paf.co.za

Registered office

2nd Floor

107 Cheapside

London

EC2V 6DN

United Kingdom

Office: + 44 (0) 20 7796 8644

info@paf.co.za

Chief executive officer

Cobus Loots

Office: + 27 (0) 11 243 2900

Financial director

Deon Louw

Office: + 27 (0) 11 243 2900

Head: Investor relations

Hethen Hira
Tel: + 27 (0) 11 243 2900
E-mail: hhira@paf.co.za

Website: www.panafricanresources.com

Company secretary

Phil Dexter/Jane Kirton

St James's Corporate Services Limited

Office: + 44 (0) 20 7796 8644

Nominated adviser and joint broker

Ross Allister/David McKeown

Peel Hunt LLP

Office: +44 (0) 20 7418 8900

JSE sponsor

Ciska Kloppers

Questco Corporate Advisory Proprietary Limited

Office: + 27 (0) 11 011 9200

Joint broker

Thomas Rider/Nick Macann

BMO Capital Markets Limited

Office: +44 (0) 20 7236 1010

 

Joint broker

Matthew Armitt/Jennifer Lee

Joh. Berenberg, Gossler & Co KG (Berenberg)

Office: +44 (0) 20 3207 7800